Workington leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Workington will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold properties in Workington with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Workington can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Workington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum owned a studio apartment in Workington on the market with a lease of a few days over 72 years left. Callum on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to invoke his statutory right. Callum obtained expert advice and secured satisfactory deal informally and sell the property.
Dr Kian Rogers was assigned a lease of a one bedroom apartment in Workington in November 2007. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparative homes in Workington with an extended lease were in the region of £285,000. The average amount of ground rent was £55 invoiced yearly. The lease concluded in 2105. Given that there were 80 years unexpired we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2011 we were phoned by Mrs Sian Robinson who, having owned a recently refurbished apartment in Workington in April 2010. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative residencies in Workington with 100 year plus lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed on 10 February 2085. Considering the 60 years unexpired we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus fees.